The Minister of Petroleum and Mineral Resources Ali bin Ibrahim Al-Naimi has said the Kingdom of Saudi Arabia Saudi Arabia plays an important role in promoting stability in world oil markets, noting that the most powerful tool possessed by the Kingdom for achieving a balanced market is its maintenance of large spare production capacity. In an address delivered at Energy Conference in Houston in the United States of America last night, the Minister said, "We work very hard to make sure that the global oil market is well supplied and well balanced, and to that end it is our ongoing policy to maintain at least 1.5 to 2 million barrels per day of spare capacity to be used when there is an unexpected need. Given current oil market conditions, our spare capacity will be 4.5 million barrels a day by mid-year when we bring the Khurais mega-project of 1.2 million barrels per day on stream, which is significantly higher than our stated policy. Maintaining our spare capacity requires considerable investment, but over the years the value of that cushion has been proven in the face of unforeseen supply disruptions, and it has helped to counter market volatility." "We will also continue to expand refining capacity in Saudi Arabia and in key markets around the world. We are continuing to invest now to help ensure an uninterrupted supply of energy when the global economy recovers, " Al-Naimi said. --MORE
